Question: where will you place your Real Estate deeds, your Will or your Stock and Bonds Certificate? In safe? With your lawyer or a trusted second party?
During last year and due to the situation in Lebanon, many of my clients surrendered or cancelled their policies. As part of the cancellation procedure, the client has to return his policy original copy to the company, the truth is most of the clients did not know where their policies are placed.
It is important to keep your life insurance policy in a safe and easily accessible place for several reasons:
1. Ease of access: By keeping your life insurance policy in a secure and easily accessible location, you can quickly locate it when needed. This is particularly important for your beneficiaries who may need to file a claim in the event of your passing.
2. Preventing loss or damage: Storing your life insurance policy in a secure location helps protect it from loss, theft, or damage. By keeping it in a safe place, such as a locked drawer or a digital storage…
The beneficiary can still claim a life insurance policy even if they don’t have the original copy. In most cases, the insurance company will require certain documentation and proof of the insured person’s death, such as a death certificate, to process the claim.
While having the original copy of the policy can make the process smoother, it is not always necessary. The beneficiary can contact the insurance company and provide the necessary information to initiate the claim. The insurance company will then guide the beneficiary through the required steps and documentation needed to process the claim.
It is important for the beneficiary to inform the insurance company about the loss of the original copy and provide any available information, such as the policy number or the insured person’s details, to assist in locating the policy in their records.
I had a colleague once calling me to check if Mr. X has a policy with my company because he passed away and his wife is confident that the husband had Life Insurance, but he never gave her a copy or informed her of the policy details. This is just like having a million dollars in a bank that no one is aware of, thus no one can claim it.
Your policies are just like your deeds and certificates. They are assets and you should handle them the same way.